Issuing Bonds at a Premium

On the first day of the fiscal year, a company issues an $5,800,000, 8%, 9-year bond that pays semiannual interest of $232,000 ($5,800,000 8% ), receiving cash of $6,182,502.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

	Cash
	Premium on Bonds Payable
	Bonds Payable

On the first day of the fiscal year, a company issues a $6,000,000, 11%, 4-year bond that pays semiannual interest of $330,000 ($6,000,000 11% ), receiving cash of $5,462,582.

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.